Mizrahi Tefahot Bank Ltd (IL:MZTF)
TASE:MZTF
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Mizrahi Tefahot
(TASE:MZTF)
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Rating:68Neutral
Price Target:
24,449.00
▲(1.41% Upside)
Action:DowngradedDate:03/28/26
The score is primarily driven by solid financial performance (strong profitability and ROE with faster TTM growth) and supportive valuation (low P/E and ~4.3% yield). These positives are tempered by weak technical signals (below key moving averages and negative MACD), indicating near-term bearish momentum.
Positive Factors
Strong profitability and returns
High and stable TTM net margin (~19%) with operating margin near ~31% and ROE about ~17% indicate durable earnings power. This supports internal capital generation, dividend capacity and reinvestment for the bank’s mortgage and lending franchise over the medium term.
Negative Factors
Elevated absolute leverage
Even after improvement, absolute leverage remains meaningful for a regional bank, making earnings and capital sensitive to credit losses or market stress. Elevated leverage can amplify volatility in downturns and constrain capital actions over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and returns
High and stable TTM net margin (~19%) with operating margin near ~31% and ROE about ~17% indicate durable earnings power. This supports internal capital generation, dividend capacity and reinvestment for the bank’s mortgage and lending franchise over the medium term.
Read all positive factors
Mizrahi Tefahot (MZTF) vs. iShares MSCI Israel ETF (EIS)
Market Cap
₪60.49B
Dividend Yield4.11%
Average Volume (3M)409.64K
Price to Earnings (P/E)10.7
Beta (1Y)1.06
Revenue Growth10.73%
EPS Growth2.70%
CountryIL
Employees7,211
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)538.10
Shares Outstanding260,048,340
10 Day Avg. Volume420,187
30 Day Avg. Volume409,640
Financial Highlights & Ratios
PEG Ratio3.80
Price to Book (P/B)1.66
Price to Sales (P/S)1.95
P/FCF Ratio3.59
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₪26,162.50Price Target Upside8.51% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)23.16
Revenue Forecast (FY)₪14.93B
Mizrahi Tefahot Business Overview & Revenue Model
Company Description
Mizrahi Tefahot Bank Ltd., together with its subsidiaries, provides a range of international, commercial, domestic, and personal banking services to individuals and businesses in Israel, Switzerland, and internationally. It operates through six se...
How the Company Makes Money
Mizrahi Tefahot primarily makes money from net interest income and fee-based income typical of a universal retail/commercial bank. Net interest income is generated by lending (notably residential mortgages and other customer and business credit) f...
Mizrahi Tefahot Earnings Call Summary
Earnings Call Date:Nov 18, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 27, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong credit growth, healthy mortgage demand, and robust financial performance, with net profits and cost efficiencies aligning with strategic goals. Despite challenges such as extra taxes and client relief impacts, the bank maintained strong capital reserves and a positive outlook.Positive Updates
Strong Credit Growth
The bank reported very strong credit growth across most asset classes, including mortgages, corporate, and middle market, as part of its strategic plan.
Negative Updates
Impact of Extra Tax and Client Relief
The bank's results were affected by the extra tax imposed on Israeli banks in 2025 and the extensive Bank of Israel client relief outline.
Read all updates
Q3-2025 Updates
Positive
Negative
Strong Credit Growth
The bank reported very strong credit growth across most asset classes, including mortgages, corporate, and middle market, as part of its strategic plan.
Read all positive updates
Company Guidance
During the Mizrahi Tefahot Bank Third Quarter 2025 Business Results Conference Call, the bank highlighted a strong performance characterized by significant credit growth across various asset classes, including mortgages and corporate sectors, which aligns with their strategic plan. The net profit for Q3 reached ILS 1.483 billion, contributing to a total net profit of ILS 4.26 billion for the first nine months of 2025. The return on equity for Q3 stood at 17.6%. The bank maintained a cost-income ratio of 34.2% for the quarter, and the financing revenues from current operations amounted to ILS 2.822 billion. The bank's equity was reported at ILS 34 billion. The provisioning ratio for loans was 0.04%, while the Tier 1 capital ratio was 10.14%, with a total capital ratio of 13.04%. The bank plans to distribute 50% of its Q3 profit as dividends, reflecting a balance between growth and capital requirements.Mizrahi Tefahot Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
74
Positive
Cash Flow
67
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 29.59B | 28.65B | 26.77B | 19.20B | 13.12B |
| Gross Profit | 14.39B | 14.67B | 14.74B | 13.24B | 10.25B |
| EBITDA | 9.41B | 9.27B | 8.16B | 7.29B | 5.37B |
| Net Income | 5.63B | 5.46B | 4.91B | 4.47B | 3.19B |
Balance Sheet | |||||
| Total Assets | 551.17B | 485.64B | 448.20B | 428.29B | 392.27B |
| Cash, Cash Equivalents and Short-Term Investments | 100.43B | 82.64B | 85.96B | 93.67B | 95.27B |
| Total Debt | 43.05B | 40.18B | 37.81B | 34.07B | 38.66B |
| Total Liabilities | 514.75B | 452.91B | 419.50B | 403.42B | 370.54B |
| Stockholders Equity | 34.77B | 31.29B | 27.46B | 23.78B | 20.77B |
Cash Flow | |||||
| Free Cash Flow | 16.08B | 13.77B | 3.09B | 3.51B | 3.79B |
| Operating Cash Flow | 16.68B | 14.38B | 3.53B | 3.90B | 4.13B |
| Investing Cash Flow | -57.10B | -43.35B | -20.46B | -34.40B | -25.12B |
| Financing Cash Flow | 41.36B | 25.08B | 9.84B | 28.24B | 30.24B |
Mizrahi Tefahot Technical Analysis
Positive
24110.00
Price Trends
23916.36
Positive
23610.32
Positive
22253.32
Positive
Market Momentum
153.33
Negative
54.28
Neutral
73.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:MZTF, the sentiment is Positive. The current price of 24110 is above the 20-day moving average (MA) of 23399.50, above the 50-day MA of 23916.36, and above the 200-day MA of 22253.32, indicating a bullish trend. The MACD of 153.33 indicates Negative momentum. The RSI at 54.28 is Neutral, neither overbought nor oversold. The STOCH value of 73.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:MZTF.
Mizrahi Tefahot Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | ₪112.50B | 11.00 | 15.67% | 3.70% | 17.63% | 6.21% | |
69 Neutral | ₪104.25B | 10.71 | 15.13% | 3.54% | 21.22% | 29.16% | |
68 Neutral | ₪60.49B | 10.72 | 16.87% | 4.11% | 10.73% | 2.70% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | ₪40.60B | 9.86 | 13.10% | 3.69% | 19.25% | -2.96% | |
62 Neutral | ₪24.49B | 10.84 | 15.81% | 4.57% | 18.25% | -4.68% |
* Financial Sector Average
IL:MZTF
Mizrahi Tefahot
23,200.00
5,617.43
31.95%
IL:LUMI
Leumi
7,616.00
2,705.88
55.11%
IL:FIBI
Fibi Bank
24,710.00
5,476.65
28.47%
IL:DSCT
Discount
3,314.00
710.15
27.27%
IL:POLI
Poalim
8,085.00
3,025.88
59.81%
IL:JBNK
Jerusalem
2,355.00
637.80
37.14%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.